5 Steps to Developing Policies And Procedures

Ken Walker

how to develop policies and procedures

Policies and procedures are essential for the long term prosperity of any business. Many businesses fail because they don’t have clearly defined policies and procedures. Clear policies and procedures can help enterprises to set expectations, maintain accountability, comply with the law, and defend themselves against employee claims. Clearly defined policies and procedures are even more critical during emergencies. They can prevent a business from collapsing when emergencies arise. Want to know how to develop policies and procedures for your business? Read on:

Policy and procedure development occurs in 5 main stages: Planning, development, review, implementation and the final review.

  • Planning stage 
  • Identification of the problem or need
  • Businesses develop policies and procedures in anticipation of a need or in response to a need.
  • In anticipation of a need

For example, when a business anticipates that a record number of people will buy their products online in the next year, the management will develop policies and procedures beforehand to take advantage of the opportunity and maximize profits. They’ll let employees know about policies and procedures to ensure smooth implementation.

1. In response to a need

For example, when the government announces regulatory changes, businesses will develop policies and procedures in response to the announcement so that they are not affected by it.

Some businesses develop policies without procedures, which is okay. But procedures are very important, especially where there is a need for specific operational instructions. In other words, employees will need to know the steps to take when an emergency occurs.

2. It starts with a plan

The policyholder, who is responsible for the content of the policies and procedures, as well as implementation, will draw up a plan that includes phases and timelines, such as;

  • Analysis
  • Research
  • Drafting
  • Consultation
  • Review
  • Revision
  • Editing
  • Finalizing
  • Implementation

The policyholder will then identify the main stakeholders for the consultation process. Most policy developers require that the policy development team comprise of people who will be affected directly by the policies and procedures.

how to develop policies 02



The policyholder will then organize a sit down with the policy and procedure implementation team and research issues related to the policies and procedures, such as legislation and best practices. They will also prepare interview questions for the consultation stage. The policyholder will also consult experts in the domain in this stage.

3. Development stage

Documentation of all policy and procedure statements with regards to the research stage is done in this stage. The policy statements should meet the following criteria:

  • They should be clear
  • They should be concise
  • They should be specific

The language used in the policy statements should be simple for everyone to understand. The policy and procedure document should spell out what the policies and procedures are, as well as the expectations of the people who will use them. It should also enhance readability. So, the policyholder must use headers and numbers in the document.

How to Develop Policies


  • Consultation

The policyholder will present the draft policy and procedure document to the appropriate stakeholders, such as government, human resources department, financial department, marketing department and other stakeholders affected by the policies and procedures for review and feedback.

  • Feedback review

The policyholder will then organize a sit down with the policy and procedure development team to review the feedback and make the necessary revisions. The document will then be sent to the legal department for review if required.

  • Drawing up an ambitious implementation and communications strategy

After the feedback review, the policyholder, in conjunction with the communication department, will draw up an ambitious plan to roll out the policies and procedures.

4. Review

This stage will include a review of the draft policies and procedure document, as well as recommendations and approval. The format of the draft document will be classified and numbered by the administrative services analyst. Once the administrative services analyst completes the classification and numbering, they will return it to the policyholder with the required revisions.

The draft policies and procedure document will then be presented to the executive team for review and approval. The executive team will look at the draft policies and procedures and provide feedback on it, including the modifications required. Once revised, the policyholder will send the draft document back to the executive team, who will approve it once satisfied.

The policyholder may require the approval of the draft document from the board of governors, especially if it contains policies and procedures touching on governance.

5. Implementation

Once the board of governors approves the draft document, it is returned to the administration services analyst, who will generate a final copy of the policy and procedure document. The policyholder will then sign the document. The administration services analyst will retain final copies of the policies and procedures and note the dates approved by the executive team and board of governors. 

The administrator and the policyholder will communicate the policies and procedures and ensure that those impacted by then comprehend the content. This will require in-depth consultation with the communication department, as well as employees.

Once employees have understood the policies and procedures, all the approved policies and procedures will be posted on the business or company website (on the policy and procedure page). The document will also be available in PDF format.

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5. Final review

The administrator will ensure compliance with the policies and procedures by monitoring their implementation. If issues come up when monitoring implementation, further clarification, training, and communications may be initiated.

The policies and procedures will be reviewed time after time based on the time frames established in the development stage. The appropriate number of times policies and procedures should be review is once every five years.

The policies and procedures should be updated during the review period. Minor changes to the policies and procedures need not go through the review and approval process. The policyholder can make them. However, all the revised changes must be sent to the executive team to determine the next steps.

In Conclusion

Developing policies and procedures is a complex and dynamic process. It requires cooperation and commitment of the executive, policyholder, stakeholders and the employees. But when developed and implemented the right way, the business or company can run efficiently, and achieve its goals easily. It can also help the business or company comply with the legal and social environment it operates in and cultivate good relationships with its employees and customers.

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